Asian Shares Plunge On Inflation, COVID Worries

RTTNews | 1191 days ago

(RTTNews) - Asian stocks nosedived on Monday as hotter-than-expected U.S. inflation data coupled with news that China's capital Beijing is facing an "explosive" COVID-19 outbreak connected to a bar stoked concerns about global growth.

China's Shanghai Composite index dropped 0.9 percent to 3,255.55 as Beijing and Shanghai resumed mass testing for COVID-19 and a planned reopening of schools in the capital was delayed, raising concerns of more crippling lockdowns.

Hong Kong's Hang Seng Index tumbled 3.4 percent to close at 21,067.58, dragged down by tech giants such as Tencent and Alibaba.

Japanese shares fell the most in more than four months after U.S. stocks posted their biggest weekly drop since January on Friday.

The Nikkei 225 Index closed 3 percent lower at 26,987.44 in its biggest fall since January 27 and hitting its lowest level since May 27. The broader Topix fell 2.2 percent to 1,901.06. Fanuc, Daikin Industries, Tokyo Electron and SoftBank Group lost 4-7 percent.

Kansai Electric added 2.6 percent after the nuclear power plant operator said it would restart a reactor in August, two months ahead of its previous plan.

Japanese large manufacturers' confidence weakened further in the second quarter, business outlook survey results from the Ministry of Finance showed earlier today. The business survey index for big manufacturers dropped to -9.9 in the June quarter from -7.6 in the first quarter.

The yen briefly fell to ¥135 against the U.S. dollar for the first time since February 2002 and the 10-year bond yield pushed to a six-year high ahead of the interest rate decision by the Bank of Japan due on Friday.

Australian markets were closed for a holiday. New Zealand's NZX-50 Index ended 1.9 percent lower at 10,924.74 - marking its worst single session in nearly four months and closing at its lowest level in two years.

Seoul stocks plunged to a 19-month low on rate hike fears. The Kospi ended 3.5 percent lower at 2,504.51, extending losses for the fifth straight session.

U.S. stocks closed out their worst week since January with a third straight losing session Friday, as an unexpected jump in inflation added to concerns about faster policy tightening and an impending recession.

Data showed the annual rate of consumer price growth accelerated to 8.6 percent in May from 8.3 percent in April, showing the biggest surge since December 1981.

A measure of U.S. consumer sentiment plunged in early June to the lowest on record, adding to the downbeat sentiment.

The Dow lost 2.7 percent, the tech-heavy Nasdaq Composite plunged 3.5 percent and the S&P 500 tumbled 2.9 percent.

Swiss Market Ends On Weak Note

The Switzerland market closed notably lower on Tuesday, in line with most of the major markets across Europe, as the mood remained cautious ahead of monetary policy announcements from the Federal Reserve and the Bank of England, due on Wednesday and Thursday, respectively.

RTTNews | 2h 37min ago

European Markets Close On Weak Note Ahead Of Fed, BoE Policy Decisions

European markets closed notably lower on Tuesday as investors, digesting a slew of economic data from the region, remained reluctant to pick up stocks ahead of Federal Reserve's interest rate decision due on Wednesday.

RTTNews | 2h 52min ago

U.S. Business Inventories Rise 0.2% In July, In Line With Estimates

The Commerce Department released a report on Tuesday showing business inventories in the U.S. increased in line with expectations in the month of July. The report said business inventories rose by 0.2 percent in July, matching the increase seen June as well as economist estimates.

RTTNews | 3h 53min ago

U.S. Homebuilder Confidence Holds Steady In September

Homebuilder confidence in the U.S. held steady in the month of September, according to a report released by the National Association of Home Builders on Tuesday. The report said the NAHB/Wells Fargo Housing Market Index came in at 32 in September, unchanged from August. Economists had expected the index to inch up to 33.

RTTNews | 4h 21min ago

U.S. Industrial Production Unexpectedly Inches Slightly Higher In August

Industrial production in the U.S. unexpectedly edged slightly higher in the month of August, according to a report released by the Federal Reserve on Tuesday. The Fed said industrial production crept up by 0.1 percent in August after falling by a downwardly revised 0.4 percent in July. Economists had expected industrial production to slip by 0.1 percent.

RTTNews | 4h 38min ago

U.S. Import Prices Unexpectedly Increase In August

A report released by the Labor Department on Tuesday showed import prices in the U.S. unexpectedly increased in the month of August. The Labor Department said import prices rose by 0.3 percent in August after inching up by a downwardly revised 0.2 percent in July. Economists had expected import prices to edge down by 0.1 percent.

RTTNews | 4h 55min ago

Canadian Market Drifts Lower In Cautious Trade

The Canadian market is down in negative territory Tuesday morning, as data showing an increase in the nation's consumer price inflation dimmed the extent of rate cuts this year although the Canadian central bank is widely expected to lower interest rate by 25 basis points on Wednesday.

RTTNews | 5h 21min ago

U.S. Retail Sales Climb 0.6% In August, Much More Than Expected

The Commerce Department released a report on Tuesday showing retail sales in the U.S. rose by much more than expected in the month of August. The report said retail sales climbed by 0.6 percent in August, matching an upwardly revised increase in July. Economists had expected retail sales to inch up by 0.2 percent compared to the 0.5 percent growth originally reported for the previous month.

RTTNews | 6h 21min ago

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